Block (XYZ) shares were in the spotlight on June 30 after Piper Sandler analyst Bill Carcache said they were significantly undervalued at current levels.
Carcache doubled-upgraded the fintech firm this morning to “Overweight,” and raised his price target to $100, indicating potential upside of more than 30% from here.
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His bullish call is significant given Block stock is already up more than 50% versus its year-to-date low in mid-February.
Piper Sandler’s Bull View on Block Stock
Carcache’s positive view on XYZ shares is rooted in “gross profit growth and margin expansion.”
According to him, the company’s network activity remains resilient despite a challenging macroeconomic environment that’s compressing fintech valuation multiples in 2026.
In his research note, the Piper Sandler analyst particularly touted Block’s ability to deepen its daily consumer interactions and effectively manage credit risk.
All in all, he no longer sees XYZ as a cyclical payments firm, but a deeply embedded ecosystem, strongly positioned to drive higher margins and structural operating leverage.
Note that Block has a history of closing July with a nearly 12% gain on average, a seasonal pattern that makes it even more attractive to own in the near term.
Should You Load Up on XYZ Shares Today?
Piper Sandler’s renewed confidence in Block shares also stems from the company’s aggressive, AI-driven corporate overhaul.
XYZ has successfully compressed internal operations, slashing five management layers down to two or three while implementing widespread automation.
This leaner, flatter corporate structure enables Block to roll out software features faster across Cash App and Square, Carcache told clients.
He believes this operational efficiency will help turn Cash App into a primary banking account, driving stickier, highly profitable deposits.
All in all, Piper Sandler sees the structural shift toward an AI-native workforce as concrete proof that this fintech firm can steadily expand profit margins while continuing to scale its ecosystem.
Block Remains Buy-Rated Among Wall Street Firms
While not as bullish as Piper Sandler, other Wall Street firms remain constructive on XYZ stock as well.
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